F.A.Q
What is VAT in the UAE?
Value Added Tax (VAT) is a 5% consumption tax levied on most goods and services in the UAE. It was introduced on January 1, 2018, and is collected at each stage of the supply chain.
What is the corporate tax rate in the UAE?
From June 1, 2023, the UAE introduced a 9% corporate tax on taxable profits exceeding AED 375,000. Free zone businesses meeting specific criteria may still benefit from exemptions.
Who needs to register for VAT in the UAE?
Businesses with an annual turnover exceeding AED 375,000 must register for VAT. Businesses with a turnover above AED 187,500 can voluntarily register.
Are freelancers and small businesses subject to corporate tax?
If a freelancer or small business earns less than AED 375,000 annually, they are exempt from corporate tax. Above this threshold, corporate tax applies.
How do I file my VAT return in the UAE?
VAT returns must be filed through the Federal Tax Authority (FTA) portal on a quarterly or monthly basis, depending on the business's registration. Payment is also made through the portal.
Are there any tax exemptions in the UAE?
Yes, businesses in Free Zones may qualify for exemptions, and some sectors like healthcare, education, and public transport enjoy VAT exemptions.